DATE: April 21, 2026
TO: Board of Supervisors
SUBMITTED BY: Hollis Magill, Director of Human Resources
SUBJECT: Memorandum of Understanding for Representation Unit 39
RECOMMENDED ACTION(S):
TITLE
1. Approve the successor Memorandum of Understanding for Representation Unit 39, Operating Engineers, represented by Stationary Engineers Local 39, effective April 27, 2026; and
2. Approve the related Salary Resolution Amendment, as reflected on Appendix “B”.
REPORT
Approval of the recommended actions would effectuate the tentatively agreed upon terms and conditions as delineated herein regarding a successor Memorandum of Understanding (MOU) for Representation Unit 39, effective April 27, 2026, through April 25, 2027. The estimated cost of the negotiated terms and conditions for FY 2025-26 is $15,817; $483 of which is Net County Cost (NCC). The estimated cost of the negotiated terms and conditions for FY 2026-27 is $74,389; $2,269 of which is NCC. Impacted department appropriations will be monitored, and adjustments will be brought to your Board prior to fiscal year-end if needed.
ALTERNATIVE ACTION(S):
If your Board were not to approve the recommended actions, the existing terms and conditions would remain in effect and contract negotiations would continue.
FISCAL IMPACT:
The total estimated cost of the negotiated terms and conditions for FY 2025-26 is approximately $15,817, including related retirement costs, $483 of which is NCC. Impacted department appropriations will be monitored, and adjustments will be brought to your Board prior to fiscal year-end if needed.
The total cost for FY 2026-27 is approximately $74,389; $2,269 of which is NCC. Sufficient appropriations will be included in the impacted Department’s FY 2026-27 recommended budget request.
DISCUSSION:
Your Board’s designated representatives reached a tentative agreement that was subsequently ratified by Unit 39, Operating Engineers, represented by Stationary Engineers Local 39 (latest MOU expired December 7, 2025).
• MOU Term:
Ø April 27, 2026, through April 25, 2027
• Salary Adjustments:
Ø Effective April 27, 2026:
§ 1% increase for all classifications
• Annual Leave:
Ø Increase cap from 600 hours to 650 hours, effective April 27, 2026.
• Compensatory Time Off (CTO):
Ø Increase cap from 60 hours to 100 hours (24 of which may be Holiday Accrual), effective April 27, 2026.
§ All unused CTO hours shall be paid out in cash annually at the beginning of each Fiscal Year.
• Retirement Actuarial Study:
Ø The County will initiate the procurement of an actuarial study during the term of this agreement to assess the impacts and costs of potentially providing a cost-of-living adjustment (COLA) to existing retirement Tiers IV and V or creating new retirement tiers with a COLA provision. The County will coordinate with Fresno County Employees Retirement Association (FCERA) to ensure efficiency and that statutory requirements with the County Employees Retirement Law (CERL) are met.
• Miscellaneous:
Ø Addition, update, or deletion of MOU language and/or addenda
REFERENCE MATERIAL:
BAI#38, December 12, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
Memorandum of Understanding for Representation Unit 39
Salary Resolution Amendment - Appendix “B”
CAO ANALYST:
Sevag Tateosian